Top 4 Advantages of Private Mortgage Loans
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Private money loans are also known as hard money and it usually comes from private investors or private lending company such as Magna Capital Group, Inc who offers loan to home buyers to purchase a specific property. The problem for most borrowers in recent years is the strict lending requirements imposed by traditional lenders. So, if you’re having trouble qualifying for a conventional mortgage loan, a private mortgage loan would be the best option for you.
Why Private Mortgage Loans?
You would use a private mortgage under any of the following circumstances:
- You want to buy an unconventional property that a prime lender or bank won’t finance.
- You need fund quickly and don’t want to wait for a long approval process.
- The cause of your bad credit history, you are being turned down by conventional lenders.
- You only need a short term loan.
- You have non-confirmable income that is preventing you from getting a traditional mortgage loan.
Here are the top 4 advantages of private mortgage loans:
1. Easy to qualify:
Private mortgage loans are easy to qualify than traditional mortgage loans. If you have less than the perfect credit score or cannot provide proof of your steady income, private mortgage loans could be a great option for you. A hard money loan is not “person” focused, it’s “property” focused. So, a person with poor credit can also obtain a hard money loan if the project shows a likely profit.
2. Great for Flippers:
Private mortgage loans are best fit for flippers. If you plan to sell or “flip” the house within a short time-frame, or want to be able to qualify for a conventional refinance within a few months after acquiring the property, you might consider such a short-term loan. Flippers use private mortgage loans to make extensive renovations in a short time period to boost the value of their home as it helps them to sell or refinance the property fairly quickly.
3. Geared toward ‘fixer-upper’ properties:
A damaged home cannot qualify for the conventional mortgages, it doesn’t matter that how good the borrower’s credit is. In this case, private money can play an important role for you. A private money lender can provide financing to get the house in sellable condition, and then “flip” the house.
4. Short Approval Process:
Private money lenders don’t need a long drawn-out loan process like a conventional mortgage does. The approval process for private mortgage loans often takes just a couple of weeks, as opposed, it takes 30 to 45 days for a conventional loan. Getting a loan with quick approval is a great advantage for many borrowers as they believe quick funding is a good trade-off for higher interest rates.
The Bottom Line
If you have a house that you want to rehab, and you believe that you could improve it enough to boost its worth in a short period of time that would allow you to pay off a private loan and replace it with a conventional refinance or sale, then getting a private mortgage loan is a viable option for you.
Magna Capital Group, Inc is a well-known and reliable private hard money lender in California, USA. We provide the best and flexible mortgage loan option that suits your real estate needs. You can get benefits of our wide range of loan options such as hard money loan programs, residential loans as well as commercial loans.
So what are you waiting? just grab the opportunity and fulfill your all kind of financial needs with Magna Capital Group, Inc. Call (310) 734 4044 or Email us at info@magnaloans.com or visit our website www.magnaloans.com.